IMF Gives Final Approval of PRGF Arrangement and Interim Assistance for Nicaragua

The Executive Board of the International Monetary Fund (IMF) has given its final approval of a three-year arrangement under the Poverty Reduction and Growth Facility (PRGF) for Nicaragua for SDR 97.50 million (about US$129 million) to support the government's 2002-05 economic program. The Executive Board also gave its final approval of Nicaragua's request for SDR 1.88 million (about US$2.5 million) in interim assistance under the Heavily Indebted Poor Countries (HIPC) Initiative (see Press Release No. 02/53).

The final decisions by the IMF Executive Board were contingent on a decision by the Executive Board of the World Bank on December 11, 2002. That decision concluded that Nicaragua's Poverty Reduction Strategy Paper (PRSP) provided a sound basis for World Bank concessional assistance.

These decisions entitle Nicaragua to the release of SDR 6.97 million (about US$9 million) under the PRGF arrangement, and of SDR 1.88 million (about US$2.5 million) in interim assistance under the HIPC Initiative.